Defence Ministry (MoD) has launched the second stage of negotiated procedure for procurement of light and medium 4x4 tactical vehicles. In Stage 2, bidders selected during the first phase submitted their detailed bids and proposed vehicles for testing. Procurement committee will now verify the compliance of proposed vehicles with operational requirements of National Armed Forces.

According to requirements of the negotiated procedure, all bidders must provide proposed vehicles for testing, and cars are currently being shipped to Latvia. Active testing of vehicles is scheduled for 14th – 18th May.

Procurement committee will conduct a closer evaluation of submitted bids in parallel with testing. Negotiations with each bidder will start after the in-depth evaluation of bids.

As reported earlier, Stage 1 of the negotiated procedure was completed in February. 12 bidders submitted their bids for the negotiated procedure, of which 6 bidders were selected for Phase 2: Paramount Group, Israel Aerospace Industries Ltd. Suppliers’ consortium, AS UPB, Otokar, Oy Sisu Auto, AM General and Oshkosh Defence.

Defence and Security Procurement Law provides that negotiated procedure must be conducted in two stages.

Light and medium high-mobility armoured four-wheel drive (4x4) tactical vehicles will significantly promote the tactical mobility of Latvian Armed Forces. Tactical mobility is a key feature of combat readiness of army units and shortage of transport platforms across units of National Armed Forces diminishes their ability to complete the identified tasks.

These vehicles will also play an important role in implementation of artillery, air defence and National Guard development projects. These vehicles have to be suitable for personnel, cargo transportation, command and control, and medical support needs. Vehicles must also be armoured and suitable for necessary weapons.

As reported earlier, defence spending will amount to €576.34 million in 2018, of which €220.27 million will be spent on developing required capabilities. Most part of the 2018 defence spending will go into capability development projects like infrastructure, air control and defence capabilities, further mechanisation of Land Force Mechanized Infantry Brigade, boosting of combat and response capabilities of National Armed Forces and the National Guard.

In 2018, Latvia’s defence spending reached 2% of the GDP for the first time ever, ensuring that Latvia now meets the requirement of NATO to spend at least 2% of GDP on defence.